NFLU Straddle Strategy
NFLU (T-REX 2X Long NFLX Daily Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The fund, under normal circumstances, invests in swap agreements that provide 200% daily exposure to NFLX equal to at least 80% of its net assets (plus any borrowings for investment purposes). It may also seek to achieve its investment objective by purchasing call options on NFLX or by investing directly in the common stock of NFLX. The fund is non-diversified.
NFLU (T-REX 2X Long NFLX Daily Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $10.9M, a beta of 0.64 versus the broader market, a 52-week range of 20.17-74.49, average daily share volume of 255K, a public-listing history dating back to 2024. These structural characteristics shape how NFLU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.64 indicates NFLU has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a straddle on NFLU?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
Current NFLU snapshot
As of May 15, 2026, spot at $25.09, ATM IV 59.60%, IV rank 19.24%, expected move 17.09%. The straddle on NFLU below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this straddle structure on NFLU specifically: NFLU IV at 59.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a NFLU straddle, with a market-implied 1-standard-deviation move of approximately 17.09% (roughly $4.29 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NFLU expiries trade a higher absolute premium for lower per-day decay. Position sizing on NFLU should anchor to the underlying notional of $25.09 per share and to the trader's directional view on NFLU etf.
NFLU straddle setup
The NFLU straddle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With NFLU near $25.09, the first option leg uses a $25.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NFLU chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 NFLU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $25.00 | $2.03 |
| Buy 1 | Put | $25.00 | $1.53 |
NFLU straddle risk and reward
- Net Premium / Debit
- -$355.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$351.89
- Breakeven(s)
- $21.45, $28.55
- Risk / Reward Ratio
- Unbounded
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
NFLU straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on NFLU. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$2,144.00 |
| $5.56 | -77.9% | +$1,589.36 |
| $11.10 | -55.7% | +$1,034.71 |
| $16.65 | -33.6% | +$480.07 |
| $22.20 | -11.5% | -$74.57 |
| $27.74 | +10.6% | -$80.78 |
| $33.29 | +32.7% | +$473.86 |
| $38.84 | +54.8% | +$1,028.50 |
| $44.38 | +76.9% | +$1,583.15 |
| $49.93 | +99.0% | +$2,137.79 |
When traders use straddle on NFLU
Straddles on NFLU are pure-volatility plays that profit from large moves in either direction; traders typically buy NFLU straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
NFLU thesis for this straddle
The market-implied 1-standard-deviation range for NFLU extends from approximately $20.80 on the downside to $29.38 on the upside. A NFLU long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current NFLU IV rank near 19.24% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on NFLU at 59.60%. As a Financial Services name, NFLU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NFLU-specific events.
NFLU straddle positions are structurally neutral / high-volatility (long premium); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. NFLU positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NFLU alongside the broader basket even when NFLU-specific fundamentals are unchanged. Always rebuild the position from current NFLU chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on NFLU?
- A straddle on NFLU is the straddle strategy applied to NFLU (etf). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With NFLU etf trading near $25.09, the strikes shown on this page are snapped to the nearest listed NFLU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NFLU straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the NFLU straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 59.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$351.89 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NFLU straddle?
- The breakeven for the NFLU straddle priced on this page is roughly $21.45 and $28.55 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current NFLU market-implied 1-standard-deviation expected move is approximately 17.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on NFLU?
- Straddles on NFLU are pure-volatility plays that profit from large moves in either direction; traders typically buy NFLU straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current NFLU implied volatility affect this straddle?
- NFLU ATM IV is at 59.60% with IV rank near 19.24%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.